In your term.log I can see nvidia related error:

Error! Bad return status for module build on kernel: 3.2.0-3-generic (x86_64)
Consult /var/lib/dkms/nvidia-173/173.14.30/build/make.log for more information.

We should try to eliminate this one before going any further. Please
remove proprietary driver that you downloaded from nvidia and try using
nvidia-current delivered in ubuntu repositories.

Also please try reinstalling the packages that can't be updated wither
using synaptic or with apt-get install 'appname' --reinstall

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https://bugs.launchpad.net/bugs/899648

Title:
  Update manager does not install downloaded updates

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